JLYes most lenders pay a 3rd party insurer (there are some self insured exceptions) and if you refinance or sell the property you can apply for a LMI refund which is proportional dependant on the number of months since the loan was settled.After 1-2 years you are unlikely to get anything back at all.

ChrisNo normally if you pay out the loan in its entirity by sale or refinance.

TuggerRemember most Financial Planners are not going to keen on pushing a property based Asset as they do not normally get remunerated for this.So unless it is a Fee for Service you are better off with a Mortgage Broker.

Recently got a client 0.9% but the loan was $1M +0.8% is standard.

KrisFor CGT purposes the Contract date and not the settlement are taken. 

KrisFor CGT purposes the Contract date and not the settlement are taken. 

Rather than proceed to Contract on a property you enter into a Call Option.This gives you the right but not the obligation to proceed to Contract after a specific time period.When the expiry date of the Option has expired you have the ability to nominate your purchaser who will complete the Contract. This can be someone to whom you have onsold th…[Read more]

All depends on the total LVR.Also be carefully rolling non deductible debts into deductible expenses. Sub accounts or separate loans are the way to go to distinguish which is which.More information would be needed to give you a  better detailed answer.

The question as to where the RBA will halt increasing the cash rate is like asking how long is a piece fo string as dependant on so many facets of economic data.Of course one way of not worrying about about future rate increases is to fix the rate of interest.With regards to the supply and demand of the higher priced properties when interest rates…[Read more]

You would only use a LOC with a separate sub account for each purpose.However as been mentioned before an offset account allievates all of the potential issues before they happen. 

ZayneLMI is calculated on the limit amount once the loan is approved even if you dont ever use it.With some lenders it will be capitalised rather than deducted from the loan proceeds but is upto the individual lender.

To correct or clarify my earlier post about the sale of a Commercial Property on retirement.If the property is sold as is then CGT is payable.However you are able subject to a million and 1 restrictions able to Transfer the Asset into your SMSF and it will be Tax free.You are not however able to Transfer a residential property to a SMSF in the…[Read more]

JamesI am not being funny but where did Terry or I make comment about using a separate lender.Also what Post of yours has Kris not responded to.I was under the impression it was he who posted the original post asking for some comment not the other way round.

There is usually no LMI on LOC's. – On the basis that the loan is not with a securitised lender.Otherwise like other loan irrespective of the LVR the loan will be mortgage insured.You can also go to 90% LVR but will incur LMI although this is of course Tax deductible as a Loan Cost.

Lol Ian i love the positive spirit.

No lender will take overseas property or your credit rating abroad into consideration but may take some of the rental income.You will however require an Australian income unless you use a Nodoc style of loan (After Macquarie Bank withdrew from the Australian marketplace this is getting harder to find).

Thinking of getting a third property as an IP and using a loan to fund the interest payments across 4 years as rental increases in current IP and future one would close the gap on my out of pockets plus will give enough negative gear to ensure I pay small amount of tax if at all.There are many totally legal strategies to use it is just a matter of…[Read more]

Hate to say i think you have little chance in doing a security swap with a fixed rate from property to a term deposit account especially if it is over a week or two.

RockianYou have until this Friday to have a loan lodged and approved or it will be rejected.To be honest if it is for a lodoc loan you can do a lot better than Mac Bank anyway.

Hi LuckyYes you should DEFINATELY (Sorry didn't want to use caps but had to make my point) have separate sub accounts for the two.In saying that Lucky when you email me I will convince you dont need a LOC for personal purposes anyway – lol.